The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2019 and 2018 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances.



	Three months ended March 31, 2019
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	105,233		$	—		$	105,233
Assumed from nonaffiliates	965			48,735			49,700
Assumed from affiliates	134,343			—			134,343
Ceded to nonaffiliates	(6,812		)	(1,973		)	(8,785		)
Ceded to affiliates	(108,213		)	(1,313		)	(109,526		)
Net premiums written	$	125,516		$	45,449		$	170,965

Premiums earned
Direct	$	101,267		$	—		$	101,267
Assumed from nonaffiliates	1,038			46,248			47,286
Assumed from affiliates	134,354			—			134,354
Ceded to nonaffiliates	(7,640		)	(2,405		)	(10,045		)
Ceded to affiliates	(104,247		)	(1,313		)	(105,560		)
Net premiums earned	$	124,772		$	42,530		$	167,302

Losses and settlement expenses incurred
Direct	$	60,935		$	—		$	60,935
Assumed from nonaffiliates	987			31,049			32,036
Assumed from affiliates	77,778			255			78,033
Ceded to nonaffiliates	(1,258		)	(1,582		)	(2,840		)
Ceded to affiliates	(61,462		)	(1,733		)	(63,195		)
Net losses and settlement expenses incurred	$	76,980		$	27,989		$	104,969



	Three months ended March 31, 2018
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	100,044		$	—		$	100,044
Assumed from nonaffiliates	1,018			41,121			42,139
Assumed from affiliates	130,201			—			130,201
Ceded to nonaffiliates	(7,970		)	(2,005		)	(9,975		)
Ceded to affiliates	(103,024		)	(1,313		)	(104,337		)
Net premiums written	$	120,269		$	37,803		$	158,072

Premiums earned
Direct	$	95,745		$	—		$	95,745
Assumed from nonaffiliates	1,002			41,092			42,094
Assumed from affiliates	129,148			—			129,148
Ceded to nonaffiliates	(8,538		)	(2,625		)	(11,163		)
Ceded to affiliates	(98,725		)	(1,313		)	(100,038		)
Net premiums earned	$	118,632		$	37,154		$	155,786

Losses and settlement expenses incurred
Direct	$	52,287		$	—		$	52,287
Assumed from nonaffiliates	992			26,415			27,407
Assumed from affiliates	85,967			358			86,325
Ceded to nonaffiliates	(2,991		)	(399		)	(3,390		)
Ceded to affiliates	(52,754		)	753			(52,001		)
Net losses and settlement expenses incurred	$	83,501		$	27,127		$	110,628